Flagstar Bancorp pays $121.5 million to settle repurchase claims
Flagstar Bancorp, Inc. (FBC), the holding company for Flagstar Bank, has entered into an agreement with Fannie Mae to resolve repurchase requests and obligations associated with loans originated between Jan. 1, 2000 and Dec. 31, 2008, for a total resolution amount of $121.5 million, the company said in a press release.
After paid claim credits and other adjustments, the bank will pay $93.5 million to Fannie Mae, the company noted.
"This agreement represents another significant milestone in Flagstar's resolution of legacy issues," said Alessandro (Sandro) DiNello, Flagstar's President and Chief Executive Officer. "We remain dedicated to providing high quality products and services to our customers while further reducing risk and improving performance. We are confident that we are taking the right steps to deliver improved financial results and shareholder returns."